THE controversial boss of a North Wales car components factory faces another employment tribunal following a successful appeal.

An eight-day long hearing at Shrewsbury last April ruled American Craig Smith did not deliberately put his firm Friction Dynamics into administration to avoid paying compensation to employees.

But an appeal into the ruling by union Amicus saw the ruling quashed – meaning the matter must be reheard.

Announcing the appeal tribunal’s finding in a written judgement Judge Peter Clark said last April’s hearing failed to make “material findings of fact”.

He said: “Having failed to make relevant findings of fact, set out in a coherent order, the employment tribunal then reached its conclusions as to the reason for the dismissals without giving any explanation to those conclusions.

“The appellants literally do not know why their case based on inferences to be drawn from the primary facts was rejected.”

The judge stressed the appeal’s findings were not a criticism of the original tribunal.

He added: “Mr Smith urges us to remit the matter to the Rees (tribunal chairman) employment tribunal which is, or was, familiar with the background to the case.

“We shall not do so having formed a firm view it would be difficult for that tribunal to revisit the same issue. In these circumstances we direct the matter be heard before a fresh tribunal appointed by the regional chairman.”

In July 2001 86 Friction Dynamics workers were sacked after a lock out sparking a massive industrial dispute.

The workers won their claim for unfair dismissal at an employment tribunal held in Liverpool in October 2002 but Friction Dynamics avoided paying out compensation because Mr Smith called in administrators in August 2003. A new firm, Dynamex Friction soon started producing car parts at the factory buying some assets from companies controlled by members of Mr Smith's family.

Several months later Mr Smith took 60% of the shares in the company and was back in charge of the factory.

At the employment tribunal last year more than 40 Friction Dynamics workers sacked shortly after the administrators were called claimed they were unfairly or wrongly dismissed.

But the tribunal ruled there were no assets to pay their wages and the new company did not take over the firm until the following week.

The tribunal also ruled it was satisfied Mr Smith had not planned the situation with Mark Jones, a former worker at the factory, who set up Dynamex Friction.